"Broker to Banker" and "Start-ups"
If you are a mortgage broker considering becoming a mortgage banker or just starting your first mortgage company, we need to talk! You have nothing to lose as the first couple of calls are free and informative. A successful "broker-to-banker" transition or start-up involves getting connected with the right correspondent lenders and warehouse lines that best fit your business model. This is critical! Not all warehouse lenders and correspondent investors are 'created equal'. All of them are good at what they do, but not all of them are good fit for you. Even after determining which lenders and investors are right for you, there is still a tedious application process with each lender/investor you will have to go through. You get one shot at this process and it needs to be done right. As the saying goes, "There is never a second chance to make a good first impression."
MBS, LLC brings over 33 years of experience in mortgage banking operations to the table to assist our clients in making that transition. Each Senior Consultant has owned and operated his/her own mortgage company and in some cases a number of them. As consultants, we have helped hundreds of companies to make this move and have developed close relationships with many lenders and investors along the way. MBS, LLC not only brings our extensive knowledge base to the table but our countless industry contacts as well to help our clients along the process. Our services range from merely advising you through the process (we call this our "Advisory Service" approach), to rolling up our sleeves and taking on some of the tasks involved with the process (we call this our "Collaborative Service" approach), and then there is our "Bank-in-a-Box" approach which involves us building you an entire mortgage banking operation and teaching you how to run it.
The following are a brief overview of the steps we will assist you with along the way: - Analyzing how your company has been run, then listening to what your vision for the future is (and offering advice if you request it) and then helping you map out and implement a plan of action.
- Securing state licenses in the states you wish to do business.
- Securing the required insurance coverage (E&O, Fidelity, Etc...)
- Securing Warehouse Lines and Correspondent Investor relationships.
- Teaching our clients how to maximize profits and avoid costly pitfalls that can happen when starting out in mortgage banking.
Warehouse Lines of Credit
Existing
When a company's warehouse lines of credit are maxed out, that company can't grow. This problem has one of two origins: either the company is experiencing poor warehouse utilization (that is, not turning the line a sufficient number of times in a month) or the company's leverage ratio has exceeded the credit provider's limits. MBS is frequently called upon by
- mortgage lenders to overcome the origins of inefficient warehouse utilization and
- warehouse lenders to assist their customers in improving loan sale processes in order to improve warehouse utilization.
MBS first reviews internal issues that may be inhibiting increased funding capacity before pursuing additional warehouse lines. If it is determined that additional lines are necessary, MBS knows the major warehouse lenders and can help negotiate favorable terms, usually better than if the company were to do so directly.
For more mature companies, gestation and/or repo lines may be a solution. MBS can assist in finding and establishing these types of lines of credit.
New
The proposed HUD ruling will require mortgage brokers to fund loans on a warehouse line in order to earn yield-spread premiums. MBS can assist qualified mortgage brokers in obtaining warehouse lines. MBS realizes, however, that such warehouse lines of credit are like loaded guns: without the proper systems and procedures for timely sale of loans, the company could easily shoot itself in the foot. MBS will work with the company to ensure implementation of systems and procedures that ensure efficient utilization of the line and maximal profit margins.
